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| By Marija Matic |
Polygon (MATIC, “B-”) is undergoing a significant transformation. This isn’t some fly-by-night decision, either. Rather, it’s the result of a yearlong collaboration between various experts in the crypto space.
And it could potentially become a game-changer for Ethereum (ETH, “B”).
That’s because this upgrade, known as Polygon 2.0, could see MATIC emerge as the “Value Layer of the Internet.”
According to the announcement, Polygon 2.0 will connect Ethereum’s independent Layer-2 networks for enhanced interoperability. It is a concept that goes beyond the creation and exchange of information, allowing individuals to create, exchange and program value.
Polygon 2.0 represents a comprehensive overhaul of nearly every aspect of the Polygon ecosystem, from protocol architecture to tokenomics and governance.
Essentially, it was envisioned to fill the missing gaps in the internet to prioritize users over gatekeepers, rent-seekers and intermediaries. By providing a platform for creating, exchanging and programming value, this new Polygon aims to empower users and establish a more inclusive and efficient digital economy.
One of the key challenges that will be addressed by Polygon 2.0 is the scalability of individual blockchains, which have inherent throughput limitations. While new chains can be created to increase capacity, this often results in fragmented liquidity and reduced security and capital efficiency.
Polygon seeks to overcome this challenge through a network of zk, or zero-knowledge, chains unified by an innovative cross-chain coordination protocol. This will provide users with a seamless experience that resembles interacting with a single chain, while also allowing for unlimited scalability.
Given the extensive nature of these upgrades, the Polygon team plans to release its detailed plan in stages over the next several months. They will begin by presenting ideas for the future of Polygon proof of stake and conclude with a transition plan for the wider community and governance by the end of July.
Additionally, they have announced plans for the utility and evolution of the native MATIC token, with further information expected to be released during the week of July 10.
Notable News, Notes & Tweets
- BlackRock files for Bitcoin exchange-traded fund in its push into crypto. It will use Coinbase Custody as its BTC custodian.
- Crypto giant Binance's U.S. affiliate fires staff after SEC charges.
- As of July 17, Dutch residents will only be able to withdraw their funds from Binance Global, since the exchange failed to acquire a Dutch license.
- Crypto developments in Asia include the halting of withdrawals from Korean crypto exchanges, the tokenization of 200 million Chinese yuan in digitally structured notes on the Ethereum blockchain and Honk Kong’s latest push to attract crypto firms.
What’s Next
Polygon 2.0 aims to simplify the complex crypto landscape, a goal that is long overdue in the crypto space. The user-friendly solution will launch in the summer. However, it is up for a fight against the SEC in the meantime.
That’s because MATIC is one of 60 cryptocurrencies that has been listed in the SEC’s lawsuits against Binance and Coinbase as a security. Considering that the reasoning behind the SEC charges could be applied to almost any coin or crypto exchange, the industry as a whole plans to fight the SEC vigorously.
Hence, BlackRock’s Friday filling for a Bitcoin ETF comes at a time when the global cryptocurrency industry has been caught in the crosshairs of U.S. regulators.
However, the fact that BlackRock — a well-respected and established asset management company — has filed for a Bitcoin ETF is seen as a positive development in the quest for regulatory approval. And this news pushed BTC’s price higher on Friday.
In the meantime, while some jurisdictions have adopted a regulation-by-enforcement approach, others are doing the opposite. According to a June 15 report, the Hong Kong Monetary Authority is pressuring major financial institutions to accept crypto clients.
The crypto world is not disappearing, it is simply reshuffling in front of our own eyes. For more timely analysis and insight into how to navigate these shifting sands, keep checking in with your Weiss Crypto Daily updates.
Best,
Marija
